Chinese Firms End Six-Year Operation Running Addis Ababa–Djibouti Railway

The China-funded 752-kilometer Addis Ababa–Djibouti Railway, a significant infrastructure project linking Ethiopia to Djibouti, has been officially handed over to local operators after six years of management by a Chinese contractor. The handover ceremony took place in Addis Ababa and marked the transition of operations to the Ethio-Djibouti Standard Gauge Railway Share Company (EDR), a joint venture between Ethiopian and Djiboutian authorities [para. 1][para. 2].

The railway, which is the first electrified cross-border rail line in Africa, connects landlocked Ethiopia with the Port of Doraleh in Djibouti and the Red Sea. This strategic link serves as a critical component of Ethiopia's National Railway Network and represents the first overseas railway project where Chinese technology was fully utilized from design through construction [para. 4][para. 5].

Initially constructed by the China Civil Engineering Construction Corp. (CCECC) and China Railway Group Ltd., starting in 2012, this project saw an investment close to $4 billion from China. The CCECC-China Railway consortium later won a six-year contract in 2015 for the operation and management of the railway against international competitors from Turkey, France, and Germany. Part of their contractual obligation included training local workers to manage and operate the railway independently by the end of 2023 [para. 5][para. 6].

As part of the transition process that began in August 2023, most management responsibilities were gradually transferred to EDR. By year-end, the size of the Chinese operations team had significantly reduced from over 700 personnel to just above 90, indicating substantial progress towards local management autonomy [para. 6].

Furthermore, while handing over operational control, CCECC will continue providing technical assistance under a two-year contract to ensure smooth operations continue during this transitional phase. Additionally, there are plans for further cooperation and capacity expansion among Ethiopia, Djibouti, and China as stated by Dai Hegen, chairman of CCECC [para. 3].

This development not only enhances connectivity between Ethiopia and Djibouti but also exemplifies successful international cooperation in large-scale infrastructure projects involving technology transfer and capacity building for sustainable operations managed by local entities [para. 1][para. 2][para. 3].